The Government Acquisition Cycle

Good salespeople think about buying cycles. They anticipate the dates that they're likely to cash in. And if times are lean now, they plant the seeds for a bountiful crop later.

So what's the buying cycle in government procurement?

The government's fiscal year runs from October 1 through September 30. Congress and the Executive Branch hammer out the budget details -- the specific funding that will go to each agency -- in the fall. The actual money doesn't arrive sometimes until late winter or even spring of the new fiscal year.

As a result, government buyers often spend the fall and winter planning for acquisitions that won't take place until spring or summer. The actual buying picks up speed in spring and accelerates to a shopping spree by mid summer. By late summer, things can get really crazy when the buyer mindset is "spend or lose it." Buyers hate to "lose it."

In October, at the beginning of the fiscal year, buying activity slows down considerably.

So, as a vendor, is this the time to sit around and do nothing? Of course not. If anything, it's the time to work harder than ever. Fall is the time to find out who will be buying what, where the action will be. It's the time to develop and build relationships and, if possible, take part in acquisition planning. It's time to find out what program managers NEED. Talk to them. Listen to them. Help them plan. Find out about their hot buttons. Which vendors have performed well and why? Which ones have left them high and dry? Gather the details and sell your company's capabilities now so that, once the spending begins, you're in a position to win business.

This cannot be overstated: the effort you put in now will DIRECTLY AFFECT spring and summer sales volume.

If you're new to government contracting, there are going to be peaks and valleys. Over time, however, if you're successful, much of your sales will spill over into fall and winter, resulting in steadier, more predictable revenue. The experienced vendor might receive orders in the spring and summer that aren't delivered and paid for, for example, until fall. Or it might have in place year-round service contracts, with payment not varying much from month to month.

But to get to that marvelous point of steady, high volume sales, you have to have patience AND perseverance. You have to be willing to stick it out while working hard at the outset or in otherwise leaner times.

So what's the strategy? The first step is to get to the right people in government. We have a product called FedBuying Intelligence that can help.

Let's say you manufacture and sell foam -- foam for furniture, foam for vertical bladder tanks, foam for boat fenders . . . foam for almost anything imaginable.

Now, which people in government -- in this case, those at the federal level -- buy foam? FedBuying Intelligence tells you that, and not vaguely but specifically.

Do a search on the word foam and up pops the names of 28 official buyers (contracting officers and contracting specialists) who've purchased foam in the last couple of years. These folks are with such departments and agencies as Defense Logistics Agency, Air Force, Army, Department of Commerce, and the Department of Transportation. For each buyer contact name, you'll also have an email address, phone number, fax and mailing address. In many cases, you'll also have the name and contact information for the program manager. For each buyer listed, FBI also provides the buyer's solicitation notices (for purchases over $25,000) for the last couple of years, so that you can see exactly what the person has bought and when.

Thus, if you sell foam, you now have critical intelligence information. And this list of key contacts grows over time as more and more foam purchases are made. You can now get on the phone and begin planting seeds, research program goals, etc.

But whether you use FedBuying Intelligence, go it alone, or use other tools that are up your sleeve, the point is this: start laying the groundwork now, in the fall. By spring, decisions are often already made. Get your products or services in the minds of the right people, at the right time.


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